Re: A Bit Short

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In going over recent class transcripts, I came up with a question:

Lets say the supplier minimum is 2000 units. After much sales effort, my
'great idea' manages to corral orders of, say, 1500 units. The supplier
won't reduce. At this point, would you 1) drop it (and notify the retailers
who did order that unfortunately you won't be able to deliver -- thus
perhaps sacrificing their confidence in you, etc.); 2) redesign, based on
retailer input, and try to get more orders, while convincing those who
already ordered that this redesign will be even better and they should still
do it; 3) order anyway, hoping you can sell the remaining 500 between order
date and delivery date; or 4) something else entirely???

Thanks.

Josh Samton (aka szammy)>>

Great Question!

If 2000 is a minimum production run, and you only get 1500 orders from a
market test, then what have you learned? I say you have learned it does not
sell very well. Now, aren't you glad to did this against samples, and not
against merchandise in your warehouse?

Can you just dump the orders for 1500? Yes, of course! Recall they are
confetti orders for utterly minimal test amounts. Stores throw such orders
out to new businesses like confetti. Review the addenda I put up at the site
http://members.aol.com/wileyccc that shows such orders and explains this.
Is your reputation shot? You dont' HAVE a reputation starting out.

So forget about it?..not quite. A retailer once cautioned me to inform him
of my decision not to ship. I thought this a bit much, until I realized, of
course, we learned something else besides the fact that it does not sell very
well. We have also learned WHY it does not sell very well. Every time a
buiyer says "no" to a rep, they add on "why". "Wrong...color, weight, shape,
function material..." something you can use ...info you can use to fix the
items problems. When you say to the retailers you wonty be shipping, say due
to market research indicating our "water hats" are just too dry, we will not
ship the current model. We will inform you as soon as our newer, improved
version is available (or some such wording).

So as to your options, you do 1 and 2. Never do #3, but if you come up with
a #4 I want to hear about it. Thanks for your question.

John Spiers

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